Assuming capital gains gets taxed as income
Posted on: April 23, 2021 at 13:21:14 CT
meatiger MU
Posts:
133262
Member For:
26.47 yrs
Level:
User
M.O.B. Votes:
10
and you only get taxed based on realized gains.
How much will investing really change?
A few things
There are still multiple ways of investing in stocks that reduces, eliminate, delays your tax burden...HSA, 401K, IRA, Roth IRA, Roth 401k, etc.
People will have money they need to put some place regardless.
Companies will still need investors to give money to them for use in their companies, and provide a return for that investment
The alternatives (at least today) are at very very low return..and likely negative return when accounting for inflation.
In the future, these various taxes will change anyways.
Not saying that I am for these new taxes..I am not...but as an investor, how much will truly change my investmet strategy...stocks are still the long term best net return solution.
I am also fortunate to have a very good financial advisor that has been preaching the tax triangle for years (tax deferred, already tax paid, and Capitol accounts)..and the importance of having them balanced to balance overall tax risk in the future.
But in the age of R vs D politics, everyone wants a short term battle and never really looks at the big picture and understands the differences between the parties is really not great...and almost no one even takes into account the best strategy is either no taxation, or any policy that permanently heads that way.